Seungbeom Go "Celltrion Audit in Progress... Further Discussions to Follow" (Comprehensive)

Rebuttal to Reports on Starting Virtual Currency Legislation: "Nothing Decided Yet"

Financial Services Commission Chairman Ko Seung-beom and other cabinet members are attending the Cabinet meeting held at the Government Seoul Office in Jongno-gu, Seoul on the 9th. The Cabinet meeting was conducted as a video conference presided over by President Moon Jae-in. Photo by Kim Hyun-min kimhyun81@

[Asia Economy Reporter Kim Jin-ho] Ko Seung-beom, Chairman of the Financial Services Commission, stated on the 23rd that the supervisory review process has resumed regarding Celltrion's violation of accounting standards, saying, "The supervisory review procedure is ongoing."

After attending the '20th Anniversary of the Financial Intelligence Unit (FIU)' and the '15th Anti-Money Laundering Day' event held at Lotte Hotel in Sogong-dong, Seoul, Ko told reporters, "Since it is being discussed at the supervisory committee, I have nothing more to say," adding, "We will discuss it further going forward."

Earlier that morning, according to a media report, the supervisory committee, an accounting advisory body under the Financial Services Commission, has recently begun reviewing the supervisory measures for the three companies in the Celltrion Group by the Financial Supervisory Service. Following this, Celltrion closed the trading day at 211,500 KRW, down 6% from the previous trading day. Celltrion Healthcare and Celltrion Pharm also closed down 5.58% and 5.9%, respectively. The sharp decline was due to concerns over regulatory sanctions by financial authorities.

Earlier that morning, Jeong Eun-bo, Governor of the Financial Supervisory Service, who held a meeting with securities company CEOs, also said, "The supervisory committee is discussing related matters," adding, "It is not appropriate to mention specific details."

Regarding media reports that the Financial Services Commission has started legislative work on virtual currency, Chairman Ko dismissed them, saying, "Nothing has been decided." He explained, "Since it is at the stage of discussion in the National Assembly, speculative articles seem to be appearing," and added, "As it is at the stage of the bill subcommittee discussion, various directions are being reviewed and discussions are ongoing." He also drew a line on reports that the government and ruling party are pushing for an independent supervisory body related to virtual currency, saying, "Nothing has been finalized."

When asked about the timing of measures for ultra-high-priced jeonse loans, he replied, "It is still under review," adding, "Nothing has been decided on when or how, so please wait a little."

Regarding some banks recently gradually resuming household loans, he said, "Except for the total volume regulation on jeonse loans, I have already mentioned that the growth rate will be around 7%," adding, "Considering that, each bank is making its own judgments and taking measures accordingly."

In response to criticism that the Financial Services Commission and the Financial Supervisory Service might be out of sync over the controversy regarding the widening gap between deposit and loan interest rates amid the surge in loans, he reiterated, "The Financial Services Commission is closely monitoring loan interest rate trends and net interest margins together with the Financial Supervisory Service," repeating the existing position.